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Cash Flows from (Used for) Operating Activities-Direct Method The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $668,000 and accounts receivable decreased by $37,400 during the year, what was the amount of cash received from customers? $ b. If income tax expense for the current year was $54,900 and income tax payable decreased by $6,600 during the year, what was the amount of cash paid for income taxes? c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid exceeded is less than than the amount of sales for the period, cash received from customers sales made on account by $37,400 during the current year.

Cash Flows from (Used for) Operating Activities-Direct Method The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $668,000 and accounts receivable decreased by $37,400 during the year, what was the amount of cash received from customers? $ b. If income tax expense for the current year was $54,900 and income tax payable decreased by $6,600 during the year, what was the amount of cash paid for income taxes? c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid exceeded is less than than the amount of sales for the period, cash received from customers sales made on account by $37,400 during the current year.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 19E
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Cash Flows from (Used for) Operating Activities-Direct Method The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $668,000 and accounts receivable decreased by $37,400 during the year, what was the amount of cash received from customers? b. If income tax expense for the current year was $54,900 and income tax payable decreased by $6,600 during the year, what was the amount of cash paid for income taxes? c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid exceeded is less than than the amount of sales for the period, cash received from customers sales made on account by $37,400 during the current year. Previous Next >
Transcribed Image Text:Cash Flows from (Used for) Operating Activities-Direct Method The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $668,000 and accounts receivable decreased by $37,400 during the year, what was the amount of cash received from customers? b. If income tax expense for the current year was $54,900 and income tax payable decreased by $6,600 during the year, what was the amount of cash paid for income taxes? c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid exceeded is less than than the amount of sales for the period, cash received from customers sales made on account by $37,400 during the current year. Previous Next >
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